English 
Spanish 
5 min read
0 comments
Texaco faces investigation by CVM for hiding R$45 million in legal debts in balance sheets; obstacle to returning to Brazil.
The Brazilian Securities and Exchange Commission (CVM) is at the center of a new investigation involving the financial industry. In early 2023, the CVM began investigating irregularities in the statements of companies prominent in the extractive market. Texaco, part of the Iconic group shared by Chevron and Ultrapar, is under investigation for failing to report legal liabilities in its financial statements. Texaco’s lack of transparency has significant implications not only for the company, but for the entire public perception of the mining sector. This case is just the tip of the iceberg in a sea of regulatory challenges faced by mining this decade.
In the mining sector, corporate governance issues are becoming increasingly important. Mineral exploration, especially in Brazil, has generated considerable debate about sustainability and the role of the CVM in ensuring fair market practices. Since 2022, large companies in the extractive industry, such as bauxite and iron ore mining companies, have been under scrutiny to increase the transparency of their operations and mitigate environmental risks. Mapping the historical challenges of the sector was essential to understand latent risks. The growing focus on ESG has brought new expectations for leaders in these industries.
Impacts and Future Expectations in Mining
On a global scale, many hope that regulatory changes will foster a more stable and trustworthy environment. CVM plays a crucial role, promoting good practices and discouraging financial secrecy in companies in the sector. Since it began to seek more ethical adjustments in the sector, the CVM has already guided more than 50 corporations to align their financial practices with international standards. In 2023, it instituted regulatory improvements to promote a new governance culture that holds executives accountable for compliance failures.
- Come Inspire as a Teacher Trainer in the UFRGS Distance Learning Rural Development Course!
- Well Decommissioning: Safe Paths to a Sustainable Future
- Schneider Electric and Cencosud Brasil: Together for Sustainable and Innovative Retail
- Schneider Electric is elected one of the best companies to work for in the industry in 2024, according to the GPTW ranking.
Mining industry professionals and analysts believe that the focus on technological automation and energy transition will be inevitable for the sector to advance in the new era. In Brazil, the search for clean energy and technological innovation in mining has become increasingly vital since 2025. Such advances can unlock untapped economic potential, realigning the sector's growth with sustainable agendas. Mining continues to offer opportunities for the creation of highly skilled jobs and significant global economic impact.
Finally, as we reflect on the impact of this CVM investigation and the emerging issues in the mining sector, it is clear that the quest for transparency and governance will continue to shape the corporate and regulatory agenda for decades to come. From 2022 onwards, the sector must prepare for a new set of requirements while realigning its corporate strategies for regulatory compliance.
Sources: Agência Brasil, Valor Econômico, and CVM Annual Report 2023.
After being convicted by the courts and becoming the target of investigation by CADE due to breach of contract that resulted in multimillion-dollar losses for a regional distributor, the fuel and lubricant brand of the oil giant, Chevron, now faces a new challenge: an ongoing investigation by the CVM. The Securities and Exchange Commission raises accusations that Chevron would have hidden legal debts, already finalized, from its financial statements. These debts exceed the amount of R$ 45 million.
CVM investigation into Chevron
The alleged debts omitted from the accounting records of Iconic, the joint venture created between Chevron and Grupo Ultra, responsible for managing Texaco products in Brazil, originate from a lawsuit that is currently in the execution phase of the sentence. The lawsuit was filed and won by MLub, a regional distributor that operates in the states of Bahia and Sergipe. This scenario represents a serious obstacle for Chevron, which is looking for a return to Brazil.
The Court of Justice of Bahia had already formally recognized that the Chevron subsidiary was violating the exclusivity agreement it had in force with MLub for the supply of Texaco products. Despite this, the letters of guarantee presented by Iconic as payment guarantee to the TJ-BA, whose values are in the order of tens of millions of reais, were never duly included in the company's financial statements. This practice goes against the transparency requirements established by the CVM for publicly traded companies.
Transparency and CVM Rules
Regarding this issue, both the CVM and the investors seek to understand whether this was an isolated case of omission of debts in accounting reports or whether this practice is repeated in other instances. The central question that stands out is: would this be the first and only episode in which the joint venture formed by the giants Ultrapar and Chevron hides liabilities in its financial statements?
As the CVM investigation deepens, Iconic, a joint venture between Chevron and Grupo Ultra, is under pressure to review its accounting practices. The Securities and Exchange Commission, in its regulatory role, is determined to ensure that there are no more gaps in financial reporting that could harm unsuspecting investors. For Chevron, which is seeking to overcome all obstacles and consolidate its return to Brazil, the outcome of this investigation will have critical implications for the market and for the confidence of its investors.
Source: Humberto Sampaio
